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Launching a World-Class Joint Venture

• James Bamford,
• David Ernst,
• David G. Fubini

JVs and alliances can deliver more shareholder value than M&As can, but getting them off the ground can trip you up in unpredictable ways.

Reprint: R0402G

More than 5,000 joint ventures, and many more contractual alliances, have been launched worldwide in the past five years. Companies are realizing that JVs and alliances can be lucrative vehicles for developing new products, moving into new markets, and increasing revenues. The problem is, the success rate for JVs and alliances is on a par with that for mergers and acquisitions—which is to say not very good.

The authors, all McKinsey consultants, argue that JV success remains elusive for most companies because they don’t pay enough attention to launch planning and execution. Most companies are highly disciplined about integrating the companies they target through M&A, but they rarely commit sufficient resources to launching similarly sized joint ventures or alliances. As a result, the parent companies experience strategic conflicts, governance gridlock, and missed operational synergies. Often, they walk away from the deal.

The launch phase begins with the parent companies’ signing of a memorandum of understanding and continues through the first 100 days of the JV or alliance’s operation. During this period, it’s critical for the parents to convene a team dedicated to exposing inherent tensions early. Specifically, the launch team must tackle four basic challenges. First, build and maintain strategic alignment across the separate corporate entities, each of which has its own goals, market pressures, and shareholders. Second, create a shared governance system for the two parent companies. Third, manage the economic interdependencies between the corporate parents and the JV. And fourth, build a cohesive, high-performing organization (the JV or alliance)—not a simple task, since most managers come from, will want to return to, and may even hold simultaneous positions in the parent companies. Using real-world examples, the authors offer their suggestions for meeting these challenges.

More than 5,000 joint ventures, and many more contractual alliances, have been launched worldwide in the past five years. The largest 100 JVs currently represent more than $350 billion in combined annual revenues. So it’s become clear to many companies that alliances—both equity JVs (where the partners contribute resources to create a new company) and contractual alliances (where the partners collaborate without creating a new company)—can be ideal for managing risk in uncertain markets, sharing the cost of large-scale capital investments, and injecting newfound entrepreneurial spirit into maturing businesses.

• JB James Bamford ( [email protected] ) is a senior managing director at Ankura, where he serves a global client base across industries on joint venture and partnership issues. He previously founded Water Street Partners and co-led the joint venture and alliance practice at McKinsey & Company.
• DE David Ernst ( [email protected] ) is a senior managing director at Ankura, where he works with clients across the globe, in all phases of the joint venture life cycle from deal making to restructuring and exit. He previously founded Water Street Partners and previously co-led the joint venture and alliance practice at McKinsey & Company.
• DF David G. Fubini is a senior partner in McKinsey’s Boston office and leads its global organization and postmerger management practices.

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A Guide to Joint Business Planning Best Practices

• March 21, 2024
• No Comments

Joint business planning is a crucial aspect of fostering successful collaborations between companies. In today’s dynamic business environment, strategic partnerships have become increasingly prevalent, making it essential for organizations to adopt effective joint business planning best practices. This article will explore the key principles and strategies that contribute to successful joint business planning, providing insights into how businesses can optimize their collaborative efforts for mutual growth and success.

Table of Contents

The Importance of Joint Business Planning in Today’s Market

In an era defined by rapid change and increasing interconnectivity, the significance of joint business planning cannot be overstated. This section explores how businesses can gain a competitive edge, foster shared vision, and unlock mutual growth opportunities through effective collaborative strategies.

Competitive Advantage and Shared Vision

Joint business planning serves as a catalyst for companies seeking a competitive advantage in the market. When organizations come together to strategically plan and align their strengths, they create a synergy that surpasses individual capabilities. This subsection delves into how collaborative efforts can amplify competitiveness by leveraging the unique strengths of each partner.

A shared vision is the cornerstone of successful partnerships. This subsection emphasizes the importance of establishing a common understanding of long-term goals and objectives. By aligning visions, businesses can enhance cooperation, minimize conflicts, and work towards a unified purpose. Effective joint business planning ensures that all stakeholders are on the same page, promoting a cohesive approach to achieving shared goals.

Mutual Growth Opportunities and Win-Win Strategy

Joint business planning creates a framework for identifying and capitalizing on mutual growth opportunities. This involves exploring synergies between partners, uncovering complementary strengths, and strategically leveraging resources. This subsection explores how collaborative planning facilitates the identification of avenues for joint growth, leading to mutually beneficial outcomes.

The essence of successful joint business planning lies in adopting a win-win strategy. This involves creating scenarios where all parties involved stand to gain, fostering a collaborative environment based on trust and reciprocity. This subsection delves into the principles of a win-win approach, showcasing how it not only enhances the success of partnerships but also builds a foundation for long-term, sustainable relationships.

Core Elements of Effective Joint Business Planning

Collaboration is only as strong as the foundation it is built upon. This section delves into the essential elements that underpin successful joint business planning, emphasizing the importance of aligning business strategies, sharing shopper and marketplace insights, and cultivating collaborative working relationships.

Aligning Business Strategies for Success

Central to effective joint business planning is the alignment of business strategies. This involves harmonizing the goals, tactics, and overarching plans of collaborating entities. By ensuring strategic congruence, partners can maximize the impact of their combined efforts. This subsection explores the intricacies of strategic alignment and how it forms the bedrock for successful joint business planning.

Effective joint business planning goes beyond immediate gains; it incorporates a holistic approach that integrates both short-term wins and long-term objectives. This subsection discusses how businesses can synchronize their timelines and milestones to create a comprehensive strategy that facilitates sustainable success.

Shared Shopper and Marketplace Insights

An integral aspect of joint business planning is the sharing of shopper insights. By pooling data and understanding consumer behavior and preferences, partners can tailor their strategies to meet evolving market demands. 

This subsection delves into the importance of shared shopper insights and how they contribute to more informed decision-making in collaborative endeavors.

In a dynamic marketplace, staying ahead requires constant awareness. This subsection explores how joint business planning encourages the exchange of marketplace intelligence. Partners can adapt to changing trends, capitalize on emerging opportunities, and navigate challenges more effectively by combining their knowledge and resources.

Collaborative Working Relationships

At the heart of effective joint business planning is the cultivation of collaborative working relationships. Trust and open communication form the backbone of successful partnerships. This subsection explores strategies for building trust among partners and fostering an environment where transparent communication is prioritized.

Collaboration often involves navigating unforeseen challenges and capitalizing on unexpected opportunities. This subsection discusses the importance of flexibility and responsiveness in joint business planning, emphasizing the need for partners to adapt and evolve together in a dynamic business landscape.

How to Create an Effective Joint Business Plan

In the pursuit of successful collaborative ventures, crafting an effective joint business plan is paramount. 

This section outlines the key steps involved in creating a robust plan, covering aspects such as setting joint objectives, resource allocation, and addressing legal considerations.

1. Setting Joint Objectives and Account Management

The foundation of any joint business plan lies in establishing clear and achievable objectives. This subsection explores the importance of defining shared goals, aligning strategies, and ensuring that all stakeholders are committed to a common purpose. Clear objectives provide a roadmap for collaborative efforts, guiding partners toward mutual success.

Effective account management is crucial for the seamless execution of joint business plans. This involves assigning responsibilities, creating accountability structures, and establishing communication channels. 

Delving into the intricacies of strategic account management, this subsection highlights how a well-organized approach contributes to the overall success of collaborative initiatives.

2. Resource Allocation and Shared Resources

Resource allocation is a critical aspect of joint business planning, ensuring that both parties contribute and benefit equitably. 

This subsection explores strategies for optimizing the allocation of financial, human, and technological resources. By balancing contributions, businesses can enhance efficiency and maximize the impact of their collaborative efforts.

Collaborative ventures often involve the pooling of resources to achieve common goals. This subsection delves into the concept of shared resources, emphasizing how partners can leverage each other’s strengths to overcome challenges and capitalize on opportunities. 

Efficient utilization of shared resources enhances the overall effectiveness and sustainability of joint initiatives.

3. Formal Contracts and Legal Aspects

A crucial step in creating an effective joint business plan is the establishment of formal contracts. This subsection explores the importance of clearly defined agreements, covering aspects such as roles and responsibilities, dispute resolution mechanisms, and exit strategies. 

Robust contractual frameworks provide a solid foundation for trust and transparency between collaborating entities.

Navigating the legal landscape is essential for the success and longevity of joint business ventures. 

This subsection delves into the legal aspects involved in collaborative efforts, addressing issues such as intellectual property, confidentiality, and compliance. Understanding and addressing legal considerations from the outset safeguards the interests of all parties involved.

Best Practices for Joint Business Planning Execution

Effective execution is the linchpin of successful joint business planning. This section explores best practices that organizations can adopt to ensure the seamless implementation of collaborative strategies, including the use of performance metrics, monitoring, accountability, and value chain analysis.

1. Performance Metrics and KPIs

Setting and monitoring performance metrics are essential elements of joint business planning execution. This subsection delves into the process of defining key performance indicators (KPIs) that align with the shared objectives of the collaborative venture. 

By establishing measurable benchmarks, organizations can gauge the success of their efforts and make informed decisions to optimize performance.

Performance metrics should not be static; instead, they should be subject to continuous evaluation. This subsection emphasizes the importance of regularly assessing KPIs, analyzing performance data, and adapting strategies based on the evolving needs of the collaboration. 

A dynamic approach to performance measurement ensures that joint business plans remain responsive to changing market conditions.

2. Monitoring and Accountability

Effective monitoring is a cornerstone of successful joint business planning execution. This subsection explores proactive monitoring strategies, including the use of technology, regular communication channels, and real-time data analysis. 

By staying vigilant and responsive, organizations can identify potential issues early on and take corrective actions to maintain the trajectory toward shared goals.

Clear accountability structures are vital for the success of collaborative ventures. This subsection delves into the importance of defining roles, responsibilities, and expectations within the partnership. 

Establishing accountability structures fosters a sense of ownership among all stakeholders, ensuring that each party contributes actively to the joint business plan’s execution.

3. Value Chain Analysis and Multi-functional Execution

Conducting a value chain analysis is a best practice that can significantly enhance joint business planning execution. This subsection explores how organizations can identify value-creation opportunities at each stage of the collaboration. 

By optimizing the value chain, partners can streamline processes, reduce costs, and deliver enhanced value to customers.

Collaborative ventures often involve the integration of multiple functions within each organization. This subsection discusses the importance of multi-functional execution, emphasizing the need for seamless coordination across departments. 

By breaking down silos and promoting cross-functional collaboration, organizations can ensure the holistic implementation of joint business plans.

Creating Value Through Customer Focus

In today’s customer-centric business landscape, creating value for consumers is at the forefront of successful joint business planning. 

This section explores strategies for placing customers at the center of collaborative efforts, enhancing consumer sales, and elevating the overall customer experience.

How to Create Value for Customers Through Joint Business Planning

A fundamental step in creating value through joint business planning is gaining a deep understanding of customer needs and preferences. This subsection explores how organizations can leverage market insights, customer feedback, and data analytics to identify and prioritize customer-centric initiatives. 

By aligning collaborative strategies with customer expectations, businesses can create offerings that resonate with their target audience.

Effective joint business planning involves co-creating solutions that address specific customer pain points. This subsection emphasizes the importance of collaboration in ideation and product development, showcasing how partnerships can bring together diverse perspectives and expertise to deliver innovative solutions. 

Co-created offerings not only meet customer needs but also differentiate the collaborative venture in the market.

Consumer Sales and Customer Experience

Joint business planning can significantly impact consumer sales by optimizing distribution channels, expanding market reach, and aligning sales strategies. This subsection explores how organizations can leverage their collaborative efforts to boost consumer sales. Whether through joint marketing initiatives, bundled offerings, or cross-promotions, aligning sales strategies enhances the overall success of the partnership.

Customer experience is a critical differentiator in today’s competitive market. This subsection delves into how joint business planning can be structured to elevate the customer experience. 

From seamless transactions to personalized interactions, collaborative ventures can enhance every touchpoint in the customer journey. Focusing on customer satisfaction not only builds loyalty but also contributes to the long-term success of the collaborative partnership.

In conclusion, the journey through the intricacies of joint business planning best practices has highlighted the pivotal role that effective collaboration plays in today’s dynamic business environment. 

From aligning business strategies and setting joint objectives to executing plans with a customer-centric focus, the success of collaborative ventures hinges on a thoughtful and strategic approach.

Frequently Asked Questions (FAQs)

What are the key metrics to measure the success of a joint business plan.

Measuring the success of a Joint Business Plan involves tracking key metrics such as revenue growth, market share expansion, customer satisfaction, cost savings, return on investment (ROI), and adherence to compliance and risk mitigation. 

These metrics provide a comprehensive evaluation of the collaborative venture’s impact on both financial and operational aspects, ensuring a holistic assessment of the plan’s effectiveness.

How do you resolve conflicts during the Joint Business Planning process?

Resolving conflicts during the Joint Business Planning process requires an open communication approach, identification of root causes, and, when needed, the involvement of a neutral third party for mediation. 

A clear definition of roles and responsibilities, the establishment of conflict resolution protocols within the joint business plan, and a focus on shared objectives contribute to addressing conflicts promptly and fostering a collaborative environment.

What role do executive sales leaders play in Joint Business Planning?

Executive sales leaders play a pivotal role in Joint Business Planning by strategically aligning sales efforts with overall business goals, contributing to resource allocation discussions, cultivating relationships with key stakeholders, providing market insights, and overseeing the performance of sales teams. 

Their involvement ensures that sales strategies complement the collaborative venture’s objectives, driving success in terms of revenue and market impact.

How often should a Joint Business Plan be reviewed and updated?

The frequency of reviewing and updating a Joint Business Plan varies but commonly involves quarterly reviews for timely adjustments based on market changes and annual updates for comprehensive reassessment of long-term goals. Additionally, trigger events such as major market shifts or significant internal changes may prompt unscheduled reviews. 

Adapting the frequency based on the dynamic nature of the business environment ensures the plan remains relevant and responsive to evolving conditions.

Are there any software tools that can facilitate Joint Business Planning?

Various software tools facilitate Joint Business Planning, offering features such as collaboration, data analysis, project management, and document sharing. Platforms like Microsoft Teams, Slack, or Asana enhance communication, while tools such as Tableau or Power BI aid in data analysis.   Project management software like Trello or Jira helps in planning and tracking progress, and CRM systems like Salesforce or HubSpot centralize customer interactions and sales activities. The selection of tools depends on the specific needs and preferences of the collaborating organizations.

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What Is Joint Business Planning?

Executive Vice President and Chief Merchandising Officer , Sam’s Club (Walmart)

Tectonic Shifts in the Retail Environment

The symbiotic relationship between retailer and Consumer Packaged Goods (CPG) companies has, till now, been able to support steady growth based on demand alone. Now, as the Consumer Goods (CG) industry continues to shift away from organic expansion, the need to reach more customers and engage new audiences is more important than ever.

Let’s dive in to some of the key shifts our customers are seeing in the retail environment:

• Competition: Authentic challenger brands are continually entering the market. According to a recent survey carried out by McKinsey, 30-40% of consumers have been trying new brands and products during the pandemic. Of these consumers, 12% expect to continue to purchase the new brands after the pandemic. More competition = more difficulty obtaining or retaining market share.
• Price Pressures: Global supply chain stress has created a multitude of issues for companies seeking to keep costs down. Disruptions in labour markets have seen  15% of companies  with insufficient labour for their facilities to keep up with increases in demand, leading to inflation re-emerging as a significant problem for the first time since the 1970s.
• Regulations: Changing consumer needs are not only encouraging the rise of new, healthier alternative brands but also instigating real legislative change. For example, in October 2022, HFSS (High in Fat, Salt & Sugar) regulations  will see a crackdown on promotions for unhealthy food and drinks, which will have serious repercussions for both suppliers and retailers.

Traditional Account Management Is Obsolete

Retail, Wholesale & Distribution Leader , Deloitte Global

These shifts have caused retailers to change the way they do business; the traditional playbook needs to be thrown out and rewritten. The diversification we have seen in channels, models and store formats means that retailers’ expectations for suppliers have changed. And, as increasing numbers of authentic challenger brands come to market, competition has never been higher. 

For both retailers and suppliers, Key Account Management (KAM) needs to be revisited. A culture of test & learn in real time needs to be applied to contend with these new market entrants and, with “key accounts contribut[ing] between 40% to 80% of revenue for a branded supplier” in developed markets as indicated by   this article by Bain & Company , the time to reinvent is now.

Major incentives for change can be distilled into these three points:

Negotiation Can Feel Like a Zero-Sum Game

In the past, the CPG industry power dynamic has often favoured the supplier, but this is no longer the case.   Only 3% of retailers   are in an exclusive relationship with just one supplier in a given category, indicating the clout they hold to sway access to consumers is higher than ever before. With   a number of Consumer Goods companies   falling prey to a one-size-fits-all to their global business models, they have been losing valuable ground to more specialised, relevant competitors.

For CPG companies, visibility at point-of-sale for their products is vital. For retailers, getting the product in-store   to   sell is their business. Having retailers being ‘on-side’ and aligned is game-changing for suppliers. 

But, as indicated in the name, Joint Business Plans need to be exactly that: Joint. If the manufacturers arrive at the table with a railroad agenda, offering little to no agency to the retailer, it will be too one-sided and off balanced. If retailers have unrealistic expectations, e.g broad assortments or 24-hour delivery, from certain suppliers, the equilibrium of the plan will be thrown off from the outset. This is where the value of insight-sharing cannot be understated;   IGD asserts   that both sides must ‘be prepared to share information with each other’ to achieve success.

Both CPG companies and retailers need to be able to influence the plan and offer respective insights to avoid creating a zero-sum atmosphere.

How Can Joint Business Planning Be Achieved?

For companies collaborating on Joint Business Plans, certain proactive steps need to be taken to fit the plan to benefit both parties. Bain & Company have set out   five key steps   that they have seen Consumer Goods companies take to achieve ‘more trustful and productive’ relationships and provide significant value.

1. Understand the Retailer’s Economics as Well as Your Own

Entering into a business relationship, such as a JBP, with a full understanding of where a potential partner is in the market is pivotal to a successful collaboration. Being aware of any weaknesses provides the opportunity to address them before they become an issue and impact your business. 

In turn, a complete understanding of your own business’ strengths and weaknesses before embarking on any external partnership is equally important. A Joint Business Plan can only be successful if it truly brings benefit to both the retailers and CPG companies; without this, joint commitment can’t be assured. 

This demands the creation of an environment where retailers and CPG companies can offer total visibility into their data, thereby enabling creation of target audiences and consumer journeys. As indicated by an   IGD Industry Survey , ‘Too often trust is the biggest barrier to putting any proposal into action’. Data transparency reduces the possibility of down-the-line surprises and potential derailing of the plan.

2. Differentiate Your Joint Business Plan and Align It With Your Retailer’s Strategy to Target Shoppers

While keeping costs down may be   advantageous, it is vital not to lose sight of the top priority; understanding the target customer segments. 

Customer data extracted through the collaborative JBP can help maintain product stock levels, illustrate demand and identify trends in product distribution. Without this information, even a theoretically perfect Joint Business Plan will fail. Understanding who the customers are and what they are buying better enables CPG companies and retailers to produce and distribute – keeping the customer’s needs at the crux of their strategy.

It’s important to note that Joint Business plans are not one-size-fits-all; it may take more time to differentiate a plan to make it more tailored to a specific relationship, but the benefits can outweigh the expense.

3. Have Teams on the Ground Executing Key Customer Touchpoints and Confirming Compliance

Research by POI illustrates that   58% of CPG companies   are struggling with retailer aligned compliance for store-level promotion execution. Clearly, there is a concerted need to ensure in-real time that assured promotions are being carried out, but   27% of CPG companies   do not get   any   real-time insights into retailer compliance, forcing them to wait until the end of a cycle to make any significant changes.

While promotion compliance isn’t a new issue in the Consumer Goods industry, it can be a major roadblock to a JBP. With teams in the field, far more regular compliance checks can be performed and the information shared much wider, much faster. 

4. Maintain Year-Round Contact With Customers at Multiple Levels and Functions

The dialogue between each party needs to continue beyond initial negotiations and agreements. Regular meetings provide opportunities to correct mid-cycle issues, where the retailer and CPG company can align on real-time results and solutions. 

Without clearly defined and tracked performance metrics, the success of the JBP is uncertain. Both parties need to agree on what data sources are going to be reviewed. Expectations must be laid out internally and externally, to establish what each side hopes to get out of the arrangement. This will prevent potential disappointment if or when unaired expectations aren’t met. 

It is also important to have discussed and agreed upon the terms and investment in the JBP. Going into a project aware of the value that each business is adding to the other and being able to quantify the ROI is fundamental to a successful Joint Business Plan.

5. Use the Most Advanced Tools and Insights to Stay on Top of Your Joint Numbers

As shown in the recent Promotion Optimization Institute (POI)   State of the Industry Report , 64% of manufacturers have challenges when looking for data from retailers. When data is such a foundational element to gainful retailer partnerships, it needs to be shared. The ideal is to involve teams from across the company including distribution, sales, finance and marketing. Siloed internal communication can negatively impact information sharing and lead to failure of a JBP.

CPG companies need to leverage real-time insights pulled from a range of commercial data sources that allow them to optimize strategies based on their business goals and current supply and promotion constraints. This maximises the value of every dollar invested in trade spend.

Aforza & Joint Business Planning

Closely aligned with the tenets of   Bain’s Key Account Management Commercial Excellence   framework, Aforza drives Joint Business Planning with an end-to-end platform of core functionalities:

• Account 360° View : Gain a complete view of an account’s hierarchies and key relationships, as well as visibility into all engagement activity across channels.
• Real-time Data & Insights on Account Performance:   Get real-time insights, from a range of commercial data sources, across all aspects of your key account performance.
• Integrated Trade Promotions:   Optimize trade spend  and   target key customers   by displaying a real-time view into promotion performance, inventory levels, sales order insights, budgets & funds, plans & objectives.
• Retail Execution   Checks from Field Sales Teams:   Leverage your teams in the field to check key account compliance and take promotion-based order capture with penny-perfect pricing on mobile;   online or offline .
• Digital Asset Management :   Ensuring all important business documents are centralised and accessible against the account, such as contracts and Joint Business Plans.

Check out this demo from Aforza’s Chief Product Officer, Nick Eales, as he showcases how leading Consumer Goods companies are leveraging Aforza to create productive account collaborations that unlock revenue potential like never before:

With industry-leading innovations and capabilities, the Aforza cloud & mobile solution continues to help consumer goods companies sell more and grow faster. Take the first steps now and create productive account collaborations that unlock revenue potential like never before.

Join Aforza

Explore exciting opportunities to join the Aforza team and drive innovation in the consumer products industry.

What Is a Joint Business Plan (JBP)? Benefits & Best Practices

By 8th & Walton | on October 2, 2022

From small businesses to large corporations, the most successful companies begin and stick with a clear business plan. When a company defines its goals, lays out a path to meet objectives, and agrees on financial spending and expectations, it creates a shared vision and accountability to succeed.

Many businesses experience greater growth when partnering with another business. In the supplier and retailer relationship, both parties working independently would be detrimental. To create a mutually beneficial partnership, they must begin by defining each company’s responsibilities, expectations, and needs in a joint business plan.

What Is a Joint Business Plan?

A joint business plan (JBP) is the collaborative process of planning between a retailer and a supplier in which both companies agree on short-term and long-term objectives, financial goals, growth, and shared business initiatives for profitability.

Joint business planning focuses on agreeing on common objectives and aligning on a single goal or set of goals. The companies in the joint business plan must work together to accomplish a shared vision.

What Is the Purpose of a Joint Business Plan?

For retailers and suppliers, having a joint business plan can create a win-win strategy in growing consumer sales. An effective JBP allows suppliers to build stronger relationships with their retailers so both parties can mutually support and benefit from each other.

When a retailer and supplier recognize each others’ needs and agree on common goals, they can share insights to support each other and improve sales, customer growth, and processes.

How Does a Joint Business Plan Work?

Two companies can come together with a joint business plan because they have one thing in common: a shared shopper . Whether it is a supplier partnering with a retailer or a children’s clothing company partnering with a toy manufacturer, having the same target audience is the first element that brings the companies together.

The companies considering a joint business venture should then share their individual business plans and discuss their mutual growth opportunities. This is where the general goals and areas of support can be defined. Specific tactics and category strategies can also be fleshed out in early discussions before moving to the formal process.

Once both companies are in agreement that the partnership will be mutually beneficial, the joint business plan can be created. Formal contracts are drawn up, approved, signed, and the plan is ready to be executed. Periodic reviews and necessary adjustments to the JBP are recommended as needed.

Benefits of Joint Business Planning

Why enter into a joint business plan with another company? The benefits can be not only financial but educational as well:

• Aligning goals.  For a retailer/supplier joint business plan, being aligned on goals creates clarity on all other areas of the business. Defining expectations on all areas from marketing to supply chain to sales goals leaves minimal area for questions. Agreeing on goals, no matter how and when they are measured, keeps both parties accountable and benefits both to meet expectations.
• Shared resources and exposure. Partnering with another company can bring a new audience and a new platform. In a simple retailer/supplier joint business plan, the retailer can introduce the supplier’s product to its core shoppers. At the same time, shoppers loyal to the supplier’s product or brand can be introduced to the retailer’s store and website for the first time.
• Greater return on investment.  By partnering with another company with a shared vision, the benefits above will provide a better ROI when the plan is executed correctly.

Joint Business Planning Best Practices

How can companies ensure their joint business plan is a good fit for both parties? These are some best practices to include in preparation for entering into the partnership:

1. Align Internally First

Before entering into a joint business plan with another company, all members of the business must agree on the benefits of the partnership. Recognizing the advantages and seeing the bigger picture is key. When employees are in alignment within the company, it will be easier to align with the partnering company on the shared vision of the joint business plan.

2. Create the Plan Together

When two businesses enter into a partnership, the joint business plan should not be built by only one. A company sending another a complete plan or just a form to fill out is not collaborative. Both companies need to build the plan from the ground up. Collaborating in the development of the joint business plan is just as important as executing the plan itself.

3. Set Specific Goals

Expectations for success in the partnership need to be specific. “We need to grow sales” or “production costs will decrease” are good goals, but too general. Keep specifics in your plan that are as specific as they are realistic. If one company wants to grow sales by 40% in the next quarter, this should be spelled out in the joint business plan so get early support or push back from the other company.

4. Assign a Metric to Each Goal

Putting a metric with a goal keeps the company accountable to the mission of the joint business plan. For example, if the goal is to grow sales by 40% in the next quarter, it would be wise to assign a weekly growth metric. If the metric is too low over a few weeks, the plan shows that action needs to be taken immediately in order to meet the 40% sales growth goal for the quarter.

5. Communicate Responsibility and Accountability

The joint business plan is the place to eliminate all guesswork. If Company A is responsible for providing labels to Company B, be very specific about the responsible parties. Clarify that the packaging coordinator of Company A will mail the labels to the warehouse manager of Company B on the first of the month.

6. Include Risks and Solutions

Planning for setbacks is key to planning for success. The joint business plan should include any possible risks or obstacles foreseen by either company. Having solutions in place for multiple scenarios makes the plan easier to execute.

7. Constantly Evaluate the Relationship

Joint business plans work better with trust, mutual respect, and a great working relationship. Keeping the relationship healthy between the companies and individuals relying on each other brings more success to the overall plan. Monitor the relationship periodically and work to resolve conflicts as they arise.

Joint Business Plans at Walmart

Walmart works with its suppliers to create plans for sales and category growth. The company relies on suppliers to bring insights to the table to spot trends and get in front of potential gaps in the business.

Back in 2011, Walmart created a joint business plan with Proctor and Gamble to pick up lost sales in air fresheners. This category was down over 2% across the chain, but P&G brought insights to Walmart on how consumers were purchasing throughout the industry.

Consumers had no problem going to Walmart for aerosol sprays for under a dollar, but would then go to specialty stores to purchase expensive candles in the same scent. Through communicating through the joint business plan, Walmart was able to create excitement around higher price-point items and show the shared shopper they could purchase the extra items in one store.

Positive business collaborations can be extremely beneficial in growing retail sales. Two companies sharing a common vision can build on each other’s best practices and support each other to mutually win at the register.

Suppliers looking for support in their Walmart business have found great collaboration with 8th & Walton. Our team of experts supports suppliers to improve reporting, analytics, supply chain, accounting, and more. To begin a great collaboration with us, request a free 15-minute consultation this week.

About the Author

8th & Walton consists of retail industry experts with a combined 200+ years of Walmart and Walmart supplier experience. Having helped hundreds of CPG companies in their efforts to be better supplier partners to the world's most influential retailer, the 8th & Walton editorial team prides itself on being a go-to resource for Walmart supplier news and insights.

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Common Pitfalls of Joint Business Planning With Channel Partners and How to Avoid Them (Part One)

Stephanie Sissler , VP, Principal Analyst

• The first step on the path to successful joint business planning is recognizing that it’s not a highly recommended or obligatory annual task — it’s an ongoing partnership imperative to drive revenue
• Joint business planning with channel partners is one of the most effective means of driving alignment and more profitable revenue growth
• Joint business planning is a learned skill that must be supported by a proven standardized process, the right data and insights, easy-to-use tools, and ongoing training and coaching

When suppliers engage collaboratively in joint business planning with their distributors, resellers or other channel partners, those partners are far more likely to deliver higher, more profitable revenue growth.

Changes in how buyers buy, along with factors such as digital transformation , migration to the cloud and market volatility, paint a complicated landscape that suppliers and channel partners must navigate to achieve their objectives. Against this backdrop, the value of collaborative joint business planning is imperative; yet, SiriusDecisions research indicates that few suppliers consistently conduct joint business planning well — and far too many don’t do it at all.

To better understand the reasons why so many suppliers struggle with joint business planning and establish a more effective way of planning between suppliers and their partners, we interviewed hundreds of B2B and B2C channel partners, supplier executives, channel account managers (CAMs) and industry associations on their experiences with joint business planning. Through a two-part series of blog posts, I’ll reveal the top six areas in which our study showed joint business planning breaking down most often and the best-practice solutions for avoiding these pitfalls. This first post covers the top three pitfalls.

One: No Value Proposition for the Partner

The ultimate goal of joint business planning is supplier and channel partner alignment on a mutually beneficial set of goals and objectives and how to achieve them (i.e. where we’re going and how to get there). Yet, the biggest complaints partners have about joint business planning is that it’s largely an annual obligatory, “check the box” activity. Suppliers enter into planning with little or no understanding of their partners’ business and consider only their needs and priorities — not those of their partners. Our research uncovered that partners are just as interested as suppliers are in truly collaborative and productive joint business planning . But if there’s nothing in it for partners, why would they make it priority?

SiriusAction: Joint business planning must be just as beneficial to the channel partner as it is to you, the supplier. This can be accomplished in the following ways:

• Collaboration. Develop the plan with your partners instead of forwarding them a form to fill out or sending them a form that their CAM has already completed and asking them to sign it. The collaborative process is just as important as the resulting written plan.
• Transparency. Kick off the process with both parties developing a keen understanding of the other’s overall business model, growth strategy and priorities to reveal opportunities for the partnership to deliver mutual respect.
• Motivation. Tie the plan seamlessly to partners’ market development funds allocation (i.e. “no plan, no money”).

Two: Not Having the Right People Engaged, Committed and Accountable

We observed that current planning with partners falls into two distinct categories, each consisting of a series of one-to-one interactions between the supplier’s CAM and a representative from the partner organization. One type of plan is little more than a document that outlines “what we’re going to sell and how much of it we’ll sell.” The other focuses on the marketing deliverables and activities within the plan period, which is just a definition of how the supplier-provided marketing dollars will be spent. The result is two disjointed documents that have little impact on improving performance.

SiriusAction: The objective of joint business planning is transformative performance improvement. To achieve this objective, joint business planning must be a far more holistic, cross-functional and multilevel process than most current approaches. This requires having the right people — from the supplier and partner — engaged from the outset to implementation and held accountable for results. The must-have joint business planning roles include:

• Executive-level champion. Joint business planning is more successful when a senior leader on both sides supports and encourages planning efforts. These leaders don’t need to be involved in the planning details. Their role is to demonstrate organizational commitment, ensure the right resources are assigned and actively participating, break down any barriers to success, and review and approve the final plan.
• Joint business planning leader. Each organization must have an assigned primary point of contact who is responsible for leading the process and driving results, and empowered to make decisions. This role is typically filled by the CAM on the supplier side and the vendor/brand champion or a high-level sales or category leader on the partner side.
• Action team. The executive stewards and joint business planning leaders are responsible for assembling the core joint business planning team, whose members have the required bandwidth, temperament and competencies to build and execute joint business planning. Though the specific participants vary by organization, partnership model (e.g. distributor vs. reseller) and desired planning outcome, they typically include sales, marketing, product specialists and operations.
• Ad hoc members. These are subject matter experts who will be engaged as needed and will most likely contribute to the planning effort when their area of expertise is required (e.g. IT, legal, finance).

Three: Lack of Internal Buy-In and Enablement

Let’s be honest. Working collaboratively with partners (working together, not against each other) requires a different way of thinking and acting for most channel organizations and CAMs. Additionally, facilitating planning sessions is a specific skill set that doesn’t lend itself to an ad hoc approach. Sending CAMs a planning template and a deadline is not going to get the job done. Our research shows that a key reason why CAMs push back on joint business planning is lack of confidence in their ability to run these types of sessions effectively, as well as concern about the time and effort required to conduct them well.

SiriusAction: To properly prepare CAMs to lead the creation and execution of joint business plans, teach them what to do, how to do it, and why this task is so important to building more successful partners and hitting their quota . Suppliers should embrace a proven, standardized, straightforward process (such as the six-step SiriusDecisions Joint Business Planning Framework and its supporting templates) backed by the right data and insights; solidly crafted and easy-to-use (preferably automated) tools; and preimplementation and ongoing training supported by coaching.

Stay tuned for part two of this series, in which I’ll discuss the other three pitfalls of joint business planning with channel partners. Until then, contact us if you’re interested in learning more about how SiriusDecisions has helped other channel sales organizations make joint business planning a revenue driver, as well as a differentiator and reputation builder for their business.

SiriusDecisions Resource

Core Strategy Report: A New Approach to Joint Business Planning (client access)

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Why Joint Business Planning is the Key to Success for McKinsey and Other Companies

By knbbs-sharer.

The world of business is an ever-changing landscape, and businesses need to be able to adapt and evolve to stay competitive. One of the ways companies can stay ahead of the pack is through joint business planning. McKinsey and other companies have found that joint business planning is an excellent way to improve their business outcomes.

What is Joint Business Planning?

Joint business planning (JBP) is a way for two or more companies to work together to achieve shared business goals. It’s a collaborative process that involves identifying strengths and weaknesses, opportunities and threats, and jointly developing a plan to achieve success.

JBP is typically used when two or more companies have a vested interest in achieving a shared goal, such as launching a new product or service. By working together, companies can leverage each other’s strengths and resources to achieve success.

The Benefits of Joint Business Planning

There are many benefits to joint business planning. Some of the main benefits include:

1. Improved communication: JBP requires regular communication between both parties. This helps to build strong relationships and ensures that everyone is on the same page.

2. Shared responsibility: Both parties share the responsibility of achieving the shared goal. This creates a sense of shared ownership and accountability.

3. Improved decision-making: Joint business planning involves a collaborative approach to decision-making. This helps to ensure that decisions are made based on a range of perspectives and considerations.

4. Leveraging of resources: By working together, both parties can leverage their respective resources to achieve success. This can include manpower, expertise, and finances.

How McKinsey Uses Joint Business Planning

McKinsey is one of the world’s leading consulting firms, and JBP is a critical part of their success. McKinsey works with clients to develop a JBP that aligns with their business goals and objectives.

McKinsey’s JBP process involves:

1. Defining goals and objectives: McKinsey works with clients to identify their business goals and objectives.

2. Identifying key performance indicators (KPIs): McKinsey works with clients to identify KPIs that will help to measure the success of the joint business plan.

3. Developing a roadmap: McKinsey and the client work together to develop a roadmap for achieving the shared goals and objectives.

4. Regular check-ins and adjustments: McKinsey and the client regularly check in on progress and make adjustments as necessary.

By using JBP, McKinsey is able to deliver exceptional results to its clients.

Joint business planning is a powerful tool that can help companies achieve their business goals and objectives. With improved communication, shared responsibility, and leveraging of resources, companies can achieve success that they may not have been able to achieve on their own.

McKinsey and other companies have shown that JBP is a valuable approach that can be used to drive success. By working together, companies can achieve more than they ever could on their own.

(Note: Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)

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Preparing to close your account

Steps to close a bank account.

• Bank account closure tips

How to Close a Bank Account

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• Before closing a bank account, you need to ensure there are no pending transactions and remove your funds.
• Most national and online banks will require you to call or visit a branch to close an account.
• Remember to reroute direct deposit and bill pay to a new account.

The first bank account you open doesn't have to be a permanent fixture in your life. Maybe you're moving somewhere that doesn't have any of your current bank's branches, you've decided to streamline your banking, or you simply found a checking account that's a better fit for you.

Whatever the case may be, you don't have to stay tied to your account forever. Closing a bank account won't negatively impact you in the same way that closing a credit card may affect your credit score . Still, there are specific steps to follow to ensure a smooth account closure.

Ensure all checks have cleared

If you've written or deposited a check, be sure it has cleared before initiating a bank account closure. If you don't, you run the risk of your check bouncing or not receiving funds you are rightly owed.

Find out if the account is in good standing

Banks won't let you close an account if you have a negative balance, so you'll need to assess your current account's standing. Negative balances will require you to put some money in so that you have at least a $0 account balance to close the account.

The standing of your account may affect whether you'll have to pay fees. If you've overdrawn from your account and have a negative balance, you'll be charged an overdraft fee . New accounts that have been opened for a short time — usually less than six months — may be charged an early account closure fee of around $25 or $30.

Create a plan for the money left in your account

Your goal should be to leave your bank account with a $0 account balance to make the closing process more efficient. If there's money left in the account, the bank has the right to use those funds to cover any overdrafts or overdraft fees and will send you a check for any remaining balance.

If you want more immediate access to your funds, transfer them out of the account ahead of time. You'll also want to redirect future bill pay and direct deposit to another account.

Contact your bank

With most banks, you won't be able to initiate the closing process online.

Most national brick-and-mortar banks will require you to go to a branch location or call over the phone first. Online banks will also want you to call.

A few banks will let you initiate the process online. TD Bank lets you close an account through online banking or email if your account has a $0 balance. Axos Bank also allows customers to initiate closure online.

Calling a bank will be enough to close an account in most cases, but some institutions may require you to fill out an additional form or write a quick note. For instance, if you have a joint bank account , you may have to fill out a form or write a note that states both individuals want to close the account.

If you aren't sure what the process is like for your financial institution, try searching through a bank's FAQ section first, then call your bank if you still can't find the information.

Withdraw your balance

If your bank requires a $0 balance to close your account, you'll need to withdraw or transfer the funds to a different account. You can typically do this by visiting an ATM if the amount is under the withdrawal limit . Your bank may also offer the option to receive a check for your balance.

Obtain written confirmation

A bank will verify once your account is closed. This will be done either over the phone, through email, or through online banking.

If your account requires you to pay a monthly bank maintenance fee on the same day each month, try to close the account at least a couple of days before you are charged the fee. This gives you a buffer in case it takes several days to close the account.

Tips for a smooth account closure

Avoid closing accounts with pending transactions.

If you have pending transactions, such as a bill payment or a paycheck, they may not be able to go through once you begin the process of closing your account.

Consider the timing of closing around bill payments

Unless you have already moved the funds from your soon-to-be-closed bank account to a new account and set up online bill pay , avoid initiating an account closure within a few days of important payment due dates, such as rent or loan payments.

Bank account closure FAQs

It depends on the bank or credit union. Some require you to call or make an in-person visit to initiate an account closure. If you have a joint bank account, documentation is needed to close a bank account.

Closing a bank account will not have a negative effect on your credit score if the account is in good standing — meaning any overdrafts and common bank fees are paid.

Bank policies vary. Generally, if the account is in good standing and the funds have been moved elsewhere, your account can be closed immediately. If you're account have a negative balance, you'll have to deposit funds to reach a $0 balance before you engage in steps to terminate a bank account.

You can request a check, withdraw the balance in cash, or transfer the funds to a new account. It's ideal to withdraw funds before account closures. 

There's only a fee if you're closing a bank account right after you've opened it. Generally, you'll have to keep your account open for 60 to 180 days to avoid an early account closure fee.

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Comcast Plans Streaming Bundle With Netflix and Apple TV+

The bundle, called StreamSaver, is the latest joint effort from entertainment companies looking to woo price-weary customers.

By Benjamin Mullin

Comcast, the parent company of NBCUniversal, is planning to offer its streaming service Peacock in a bundle with Netflix and Apple TV+, Brian Roberts, the company’s chief executive, said at an investor conference on Tuesday.

Called StreamSaver, the bundle will be sold at a deep discount compared with subscribing to all three services separately, Mr. Roberts said. He didn’t specify a price for the service, which is expected to debut this month.

“We’ve been bundling video successfully and creatively for 60 years,” Mr. Roberts said. “This is the latest iteration of that. And I think this will be a pretty compelling package.”

Over the past year, several entertainment companies have joined forces to entice customers who are weary of signing up and paying for numerous individual streaming services.

Warner Bros. Discovery, Fox and Disney announced this year that they were teaming up to offer a streaming service with games from the National Basketball Association and the National Football League. Last week, Disney and Warner Bros. Discovery said they would bundle their streaming services, selling users a package that included Disney+, Hulu and Max.

Comcast has long offered its users a menu of streaming services on Xfinity, its package of services that includes cable television and broadband internet. For years, the company has offered services like Netflix and Apple TV+ as add-ons to its existing television bundle, acting as a vendor for those companies. This is the first time that Comcast will offer both services as part of a discounted bundle.

Comcast, which has millions of broadband and cable television customers across the United States, has different incentives to bundle streaming services than many of its competitors have. If Comcast can give its customers additional reasons to stick with the company, or persuade them to pay for more features through Xfinity, the effort to bundle services will have been worth it.

Many other internet providers have sold bundles that include streaming services. When Disney+ launched, Verizon offered a promotional bundle with that service. When the short-lived, short-form streaming service Quibi launched, T-Mobile offered to bundle its wireless offering with that service.

Comcast has been willing to spend big to gain a foothold in the competitive video streaming business. Peacock, which launched in 2020, lost $2.7 billion last year, Comcast said in a filing, but paying subscribers increased to 31 million. The company has said Peacock’s losses were narrowing as the service matured.

Benjamin Mullin reports on the major companies behind news and entertainment. Contact Ben securely on Signal at +1 530-961-3223 or email at [email protected] . More about Benjamin Mullin